Congratulations for providing the leadership in
getting an investigation underway, as outlined in this
months North & South magazine (refer last paragraph Page
10), on what part the Resource Management and Local
Government Acts play in strangling urban land supply and
what needs to be done in addressing the problem. I look
forward to learning more regarding the details of this
investigation.

Please find attached, firstly, an e copy of
the North & South article, provided by the magazine
following my request. And secondly, a letter from me to the
magazine, congratulating you for this initiative and
incorporating some suggested solutions for further
discussion. The Deputy Editor, Virginia Larson, with the
team at North &South, have excelled themselves in providing
this exhaustive, well researched and balanced 11 page
article dealing with this important issue.

I will refrain
from unnecessarily repeating the contents of my attached
letter to North & South. You will note in reading it, that I
am of the view that in addressing this issue of strangled
urban land supply, that the causes and likely solutions are
not complex. The serious social issue can be solved with the
required political leadership at all levels of Government
and the support of communities that care. The process is now
underway with your initiative.

My generation had the
opportunity of affordable housing - something that is
unnecessarily being denied the younger generations. We must
ensure this social injustice is dealt with, so that younger
people see New Zealand as we did – as a country of
opportunity and social justice with respect to
housing.

The Editor
10 August 2006Letters to the Editor SectionNorth &
South magazineEm
north&south@acpmagazines.co.nzAUCKLAND

Dear
Editor,

AUGUST 06 COVER STORY – “ LOCKED OUT – WILL
THE KIDS EVER OWN A HOUSE”

Your article “Locked Out”
dealing with the housing affordability crisis facing New
Zealand, is an enormous contribution to the issue, in
providing a diverse range of views. It was particularly
pleasing to learn of the initiative by Hon Chris Carter,
Minister for Housing, in getting an investigation underway
on what part the Resource Management Act and the Local
Government Act have in strangling the supply of urban land.
The Minister deserves our congratulations and support with
this work.

This investigation will be assisted greatly by
the work earlier in the year by Arthur Grimes and Andrew
Aitken of Motu Research for the Centre for Housing Research
and the extensive reputable international research, which
clearly shows that artificial strangulation of urban land
supply, is the root of the problem. Much of this
international research is identified within the Demographia
Survey ( www.demographia.com ), released earlier in the
year.

The focus therefore needs to be on ensuring that the
price differences between rural and raw (prior to
subdivision works) peripheral urban land is reduced over a
reasonable time. Price is after all the only real measure of
scarcity or abundance. One possibility is for Central
Government to create an Urban Land Monitoring Authority, to
monitor and where required, guide Local Authority
performance on land supply.

Local Governments must play
thei part by incorporating Social Sustainability Indicators
within their Community Plans, following the initiative of
the New South Wales Department for Housing in recommending
this approach to Local Authorities. On a phased basis over
time, Local Authorities should be required to ensure that
housing within their area, does not exceed three times
earnings, by employing the easily understood and credible
Demographia approach.

Decoupling incomes from house prices
is not wealth creation, but simply inflation and severe
social injustice. The solutions to this problem of our own
making need not be difficult or complex. But they will
require political will and initiative at all levels of
government, within communities that care. The Housing
Minister, Hon Chris Carter has provided the necessary
leadership, in getting this process underway.

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